AppLovin (APP, Financial) just had recently a rough day, dropping 15% after being snubbed for the S&P 500 index despite strong speculation it would make the cut. The sell-off, its worst in two years, follows a meteoric 780% stock surge this year, fueled by its nearly $115 billion market cap and a booming non-gaming business. But here's the kicker: analysts aren't sweating the dip. Oppenheimer doubled down on its bullish call, keeping an "Outperform" rating and raising its price target to $480, calling the pullback a prime buying opportunity for long-term investors. At the time of writing, its share turned around and jumped by more than 4% this morning.
The growth story here is compelling. AppLovin's latest pilot programs in e-commerce received rave reviews, showing the company can crush it outside gaming. Add to that its financial maneuvers—issuing $3.55 billion in senior notes and locking in a $1 billion revolving credit line—and you've got a company positioning itself for some serious moves. With Q4 revenue expected to hit up to $1.26 billion and adjusted EBITDA forecasts near $760 million, the fundamentals are solid. Other big players like Stifel and Piper Sandler agree, raising price targets and keeping their "Buy" ratings intact.
So what's next? The S&P 500 snub might sting, but it doesn't change the big picture. AppLovin has the cash, the strategy, and the growth momentum to keep climbing. If you've been watching from the sidelines, this pullback might be your window. Remember: the best plays often come when others are panicking.
